In today’s globalized world, financial inclusion has turned almost into a fundamental right for citizens as millions still don’t have access to traditional banking. This lack of access to banking has hindered their economic growth and financial stability.
Thanks to the rise of neo-banks and crypto services, a ray of hope has emerged for the unbanked population of the world living in regions where traditional banking infrastructure is nonexistent or underdeveloped.
Among these solutions, Boxwind is one example that aims to provide digital asset trading and financial services to the underserved.
The Problem of Financial Inclusion
According to the World Bank, 1.4 billion adults are unbanked meaning they don’t have an account with a financial institution or through a mobile money provider. This is most prevalent in emerging markets where economic instability, lack of infrastructure and limited financial literacy create big barriers to traditional banking. The unbanked often resort to informal services which can be expensive and insecure and perpetuate financial exclusion.
Neo-banks and Crypto Services
Neo-banks and crypto services are an emerging phenomenon where unlike traditional banks,the entire setup is online with no physical branches and significantly lower operational costs. Crypto services offer decentralized financial transactions through blockchain, a secure and transparent way to manage digital assets. These digital platforms have several advantages, lower fees, easier access through mobile, more security and are perfect for the underserved.
Neobanks and crypto platforms offer a wide range of financial services that cater to their users. These services include savings accounts, investments and digital trading, a full suite of financial tools. One of the key features of these platforms is their customer service, which is crucial for new users who may not be familiar with digital financial services. Good customer service helps to build trust and ensure users can navigate the platform, and address any issues or concerns quickly.
Boxwind: A Pioneer in Empowering the UnbankedÂ
Boxwind, a new digital exchange platform, is a leading example of digital platform reaching out to unbanked.. Launched in 2023 by the Exinity Group, Boxwind aims to make digital assets accessible and support individuals on their journey to financial freedom.
The Exinity Group with its history of online trading through global brands like Alpari and FXTM has a solid foundation to build upon. Boxwind’s mission is to empower users in emerging economies to have the tools and resources to navigate the digital asset markets.
Since its launch, Boxwind has achieved several key milestones. The platform got its license in September and submitted its app to the iOS app store, with a soft launch in October. Although the product is not yet live, Boxwind benefits from the capabilities of the Exinity Group which has over 2 million clients worldwide.
The team is also looking at cross-selling opportunities within the group’s existing client base to leverage the existing trust and credibility of the Exinity brands.
Mutually Beneficial Business Model of Boxwind
The business model of Boxwind could be a win-win for both the companies and the users. For companies, expanding into underserved markets means more users and market share. By offering financial services they can generate revenue through transaction fees, subscriptions or premium services.
With the support of Exinity Group Boxwind can operate with a slightly higher pricing than market to account for the high customer service demands of its target market and be sustainable and grow.
For users, it’s big. Access to digital financial services means financial inclusion, and individuals can save, invest, and manage their finances better. Platforms like Boxwind also offer educational resources to improve financial literacy so users can make informed decisions and be confident in their financial activities. This empowerment can lead to more economic stability and opportunities for personal and community growth.
What are the emerging markets?
Boxwind and similar platforms target emerging markets where financial inclusion is most needed. These are Southeast Asia, Sub-Saharan Africa and South America, areas that have been underserved by traditional banking systems. Boxwind is focusing on English speaking countries first, Kenya, South Africa and Nigeria, where they already have language capabilities to communicate and support.
By focusing on these regions Boxwind will address the specific challenges of the users in these markets. Limited access to banking infrastructure, high transaction costs and lack of financial literacy. With tailored services and targeted outreach Boxwind will offer a reliable and accessible digital asset trading platform for users to be financially free.
